360. Provisions as to financial emergency.-
(1) If the President is satisfied that a situation has arisen whereby the financial
stability or credit of India or of any part of the territory thereof is threatened, he may
by a Proclamation make a declaration to that effect.

(c) shall cease to
operate at the expiration of two months, unless before the expiration of that period it
has been approved by resolutions of both Houses of Parliament:

Provided that if any such
Proclamation is issued at a time when the House of the People has been dissolved or the
dissolution of the House of the People takes place during the period of two months
referred to in sub-clause (c), and if a resolution approving the Proclamation has been
passed by the Council of States, but no resolution with respect to such Proclamation has
been passed by the House of the People before the expiration of that period, the
Proclamation shall cease to operate at the expiration of thirty days from the date on
which the House of the People first sits after its reconstitution unless before the
expiration of the said period of thirty days a resolution approving the Proclamation has
been also passed by the House of the People.]

(3) During the period any
such Proclamation as is mentioned in clause (1) is in operation, the executive authority
of the Union shall extend to the giving of directions to any State to observe such canons
of financial propriety as may be specified in the directions, and to the giving of such
other directions as the President may deem necessary and adequate for the purpose.

(4) Notwithstanding
anything in this Constitution-

(a) any such direction
may include-

(i) a provision requiring
the reduction of salaries and allowances of all or any class of persons serving in
connection with the affairs of a State;

(ii) a provision
requiring all Money Bills or other Bills to which the provisions of article 207 apply to
be reserved for the consideration of the President after they are passed by the
Legislature of the State;

(b) it shall be competent
for the President during the period any Proclamation issued under this article is in
operation to issue directions for the reduction of salaries and allowances of all or any
class of persons serving in connection with the affairs of the Union including the Judges
of the Supreme Court and the High Courts.